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Pakistan Wins Billion-Dollar Backing: Reko Diq Mine and Rail Upgrade

26 August, 2025
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    Pakistan is starting to attract the kind of investment that changes long-term trajectories. For years, the country’s mineral reserves and strategic geography were talked about more than acted upon. That’s beginning to shift. Two announcements in quick succession, one in mining, the other in transport, suggest that global financiers now see Pakistan not just as a frontier, but as a future hub.

     

    ADB Commits $410M to Pakistan’s Reko Diq Mine

    Earlier this week, Reuters reported that the Asian Development Bank approved a $410 million package for the Reko Diq copper-gold mine in Balochistan. The project, run by Barrick Gold in partnership with both the federal and provincial governments, is valued at about $6.6 billion and ranks among the largest undeveloped copper-gold deposits in the world.

    Output is expected to begin in 2028. Initial production should reach 200,000 metric tons of copper a year, with later phases doubling that figure. Over the project’s life, revenues could approach $70 billion. For Pakistan, it’s more than a mine; it’s a signal that one of its most ambitious ventures is finally moving from blueprint to reality.

     

    $2B Railway Upgrade to Move Copper to Market

    Just as important as what comes out of the ground is how it moves to market. That’s why the ADB is also preparing to lead a $2 billion upgrade of the Karachi-Rohri rail line, a key link for transporting ore from Balochistan to export hubs. The project had originally been tied to Chinese funding under the Belt and Road Initiative, but never advanced. By stepping in, the ADB ensures that Reko Diq will not be held back by outdated logistics, according to Reuters.

    The mine and the railway are different projects, but they’re linked by purpose. One unlocks resources; the other moves them. Taken together, they create a connected system that ties Pakistan’s natural wealth directly to global trade routes.

     

    Reko Diq and Rail Projects Signal Economic Growth

    Copper is in growing demand, driven by electric vehicles, renewable energy, and digital infrastructure. Countries able to supply it reliably are likely to hold a competitive edge. Reko Diq positions Pakistan to be part of that supply chain at exactly the right time.

    The rail upgrade adds another layer. Faster cargo, lower transport costs, better links across the economy, and benefits that go beyond copper alone. Businesses relying on trade routes stand to gain, and regions long held back by weak transport could find new opportunities opening up.

     

    Foreign Direct Investment Shows Confidence in Pakistan

    As Investopedia notes, foreign direct investment (FDI) is more than money; it’s a lasting stake in another country’s growth. Investors provide capital, technology, and often management, making FDI a vote of confidence in long-term prospects.

    Seen through that lens, Pakistan’s latest wins matter even more. These are multi-decade projects, designed to generate value for both the country and its partners, not short-term inflows or speculative trades. That’s the kind of investment that builds credibility and changes reputations.
    .

     

    Young Population and Infrastructure Fuel Future Potential

    With one of the youngest populations in the world, Pakistan has the people to match these projects with talent and energy. Global partners are providing the capital and infrastructure. If these strands are woven together with consistency, the country could be at the start of a growth cycle that reshapes how it is seen on the world stage.

    The headlines may focus on a mine and a railway. But the bigger story is what they represent: Pakistan winning the kind of investment that turns potential into progress.

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